Shoppers Stop Q2 net falls over 19%

The company had posted a net profit of Rs 15.90 crore during the same period of the previous fiscal.NEW DELHI: Department store chain Shoppers Stop Ltd has reported a 19.24% fall in net profit for the quarter to September.

The K Raheja Corp-promoted company on Friday said net profit fell to Rs 12.84 crore from Rs 15.90 crore in the year-ago quarter.

Shoppers Stop, which operates large format department stores, hypermarkets, home stores and speciality stores such as Crossword, Mothercare and M.A.C, said gross retail turnover, or revenue, stood at Rs 975 crore as against Rs 943 crore in the same quarter of previous year.

“We have seen a steady growth over the first half of this fiscal. Our like-to-like growth at 5.3% is a good sign and we are well poised for a strong festive season,” said Govind Shrikhande, customer care associate & managing director at Shoppers Stop.

The like-to-like sales growth for the quarter was muted as the festival of Dussehra fell in October this year as against September when it is normally observed, Shrikhande said. He also blamed the reduced sales period this time for the muted like-to-like growth. Like-to-like sales, a key metric in the retail industry, compares sales at the same outlets over for two periods.

“We are in an exciting phase right now with our omni-channel operations underway and our partnerships with Snapdeal & FreeCharge coming into effect this festive season. Our refreshed online site and app will go live before Diwali. We have signed Red Prairie from JDA for our next set of investment in the omni-channel journey,” Shrikhande said.

In the quarter to September, the company added three Shoppers Stop stores and four Crossword stores.